We audited the mortgage origination and business practices of First Magnus Financial Corporation’s (First Magnus) corporate office in Tucson, Arizona. The objective of the audit was to determine whether First Magnus violated U.S. Department of Housing and Urban Development (HUD) requirements by paying its brokers volume-based incentives for originating and processing Federal Housing Administration (FHA) mortgages. We determined that First...

We audited the City of Phoenix Housing Department’s (Housing Department) Housing Choice Voucher program. We conducted the audit as part of the Office of Inspector General’s (OIG) annual plan. The Housing Department was selected for review because it is the largest housing authority in the state of Arizona and had not previously been audited by OIG. The objective of the audit was to determine whether the Housing Department supported tenant...

We audited the Housing Authority of the City of Eloy (Authority) because the U.S. Department of Housing and Urban Development (HUD) had rated the Authority as troubled for five years. In 2007, the Authority had significant financials problems and terminated its executive director. We determined that the Authority did not have adequate internal controls to safeguard assets and reasonably ensure that HUD funds were used in accordance with...

We reviewed the use of contract fee inspectors by the Office of Multifamily Housing Boston Hub (Boston Hub) as part of our 2007 annual audit plan. This review was initiated because U.S. Department of Housing and Urban Development (HUD) staff rely on contract fee inspectors to oversee the work of contractors performing renovation work on HUD-insured properties. Our objective was to determine whether the Boston Hub effectively used contract fee...

Attached is the report on our audit of the Holyoke Housing Authority's (Authority) Section 8 Housing Choice Voucher (Section 8) program , Audit Report Number 2008-BO-1002, dated November 26, 2007. We audited the Holyoke Housing Authority's (Authority) Section 8 Housing Choice Voucher (Section 8) program as part of our fiscal year 2007 audit plan. Our objectives were to determine whether the Authority's Section 8 housing units met...

We audited of the City of Chicopee, Massachusetts (City), Office of Community Development's administration of its Community Development Block Grant (CDBG) program. The objectives of the audit were to evaluate the City's administration of its public facilities and improvement activities funded through the CDBG program and its oversight and monitoring of CDBG funds it provided to the City's Parks and Recreation Department and...

We audited the Housing Choice Voucher program (Voucher program) at the Holyoke Housing Authority (Authority) as part of our fiscal year 2007 annual audit plan. The objective of the audit was to determine whether the Authority administered the Voucher program in accordance with its annual contributions contracts and U.S. Department of Housing and Urban Development (HUD) requirements. Our efforts focused on whether the Authority properly (1)...

We reviewed the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs administered by the Community Development Agency, City of Fall River, Massachusetts (City) as part of our annual audit plan. Our audit objective was to determine whether the City administered its CDBG and HOME programs in compliance with U. S. Department of Housing and Urban Development (HUD) requirements. We focused on whether the City: (1...

As part of our annual plan, we audited the Office of Housing and Community Development, City of New Bedford, Massachusetts' (City) administration of its Community Development Block Grant (CDBG)) and HOME Investment Partnerships (HOME) programs. Our audit objective was to determine whether the City complied with U.S. Department of Housing and Urban Development (HUD) regulations in administering its CDBG and HOME programs. The City generally...

As part of our annual plan, we audited the Office of Community Development, City of Chicopee, Massachusetts' (City) administration of its Community Development Block Grant (CDBG) and HOME programs. The objective of the audit was to evaluate the City's administration of its housing rehabilitation contracts funded through the CDBG or HOME programs and its oversight and monitoring of various for-profit developers (developers) involved in...